SpaceX’s military satellite network Starshield was throttled in Ukraine, sparking friction between the U.S. and Ukraine and sending French satellite operator Eutelsat’s shares sharply higher. According to Yahoo Finance data, Eutelsat closed at 1.766 euros in Paris on October 16, up about 17% for the day. CNBC reported that the stock had gained 25% over the previous five days.
Ukraine accuses Starlink of being cut off in the middle of the night; Musk says restrictions are decided by the U.S. military and the president
Ukrainian officials said Tuesday that Starlink terminals moving at speeds of more than 160 kilometers per hour could not connect. Ukraine relies on these connections to track and intercept incoming targets; Kyiv accused SpaceX of giving no advance notice. In an interview with British host Piers Morgan, Ukrainian President Volodymyr Zelensky said, “Starlink was turned off.” The restrictions took effect in the middle of the night, preventing Ukraine from intercepting some Russian drones, and “people died as a result.”
Musk responded on X on October 14, saying that the Starshield system is owned and controlled by the U.S. government, and that “any limits on speed or usage are decided by the U.S. military and, ultimately, the U.S. president.” He also said Starlink is a commercial service operated by SpaceX and can only be used for civilian or defensive purposes, not offensive military operations. The White House and Pentagon did not immediately respond to CNBC’s requests for comment.
Deutsche Bank: Eutelsat is too small; shares expected to give back gains
Deutsche Bank analysts said in a report on Thursday that Eutelsat’s rally this week further demonstrates the “sovereign value” of Europe’s satellite network, with the market viewing it as a “credible alternative” to Starlink. But Deutsche Bank also noted that although Eutelsat provides a global low-Earth orbit satellite network, it lacks the scale to offer as many user terminals as Starlink. “We expect the shares to give back some of their gains.”
Eutelsat merged with satellite network operator OneWeb in 2023 in hopes of challenging Starlink’s dominance. According to the companies’ websites, Eutelsat currently has more than 600 satellites in orbit, while Starlink has more than 6,750.
Serhiy Derkach, Ukraine’s deputy minister for communities, territories and infrastructure development, told CNBC on Friday that Russia had stepped up attacks on bridges, railways and border crossings in Ukraine while Starlink’s military use was restricted. “The U.S. is limiting Starlink’s use on the battlefield, and Russia thinks this is their moment,” he said. Ukrainians are currently experiencing power outages lasting four to 12 hours a day.
This article, “Starlink Ukraine speed-limit controversy sends French satellite operator Eutelsat shares up 17% in a day,” first appeared on .
【Further Analysis】
【My Take】
This event highlights the significant risks posed by geopolitics and the heavy concentration of critical infrastructure in a single company. SpaceX’s Starlink (Starshield) effectively controls vital communications and defense capabilities during wartime. When the U.S. government intervenes to impose restrictions for strategic reasons, it exposes the vulnerabilities of non-U.S. countries’ dependence on American technology. This is prompting European markets to urgently pursue “strategic autonomy.” The surge in French company Eutelsat’s share price reflects investors’ interest in reducing reliance on U.S. providers in satellite communications or diversifying risk, and signals that defense technology and sovereign satellite networks will be long-term investment themes.
【Market Impact】
In the U.S. stock market, SpaceX is not publicly listed, but this event could prompt greater scrutiny of policy and geopolitical risks for defense stocks such as Lockheed Martin and RTX, as well as other U.S. satellite communications suppliers. In Europe, Eutelsat shares may benefit in the short term from the news-driven momentum, but, as Deutsche Bank noted, the gap in scale relative to Starlink is enormous, making it risky to chase the rally. In Taiwan, low-Earth orbit satellite supply-chain companies—such as subsystem makers and manufacturers of ground-station components—could see potential order transfers and valuation recovery if they can enter non-U.S. or European satellite supply chains. This would be a potentially neutral-to-positive opportunity, although the actual revenue contribution will depend on whether European defense budgets are put into action. The cryptocurrency market has no direct connection to this event and remains neutral.
【What to Watch Next】
Closely monitor the ensuing diplomatic tensions between the U.S. and Ukraine over restrictions on Starlink, official policy announcements from the White House and Pentagon, and whether European countries expand subsidies and order support for domestic satellite operators such as Eutelsat. Whether Eutelsat shares give back their gains as Deutsche Bank expects will also be an important test of the market’s rationality.
【Risk Warning】
Geopolitical developments and policy changes are highly unpredictable, and military communications providers are vulnerable to government regulations and national security reviews. Investors should beware of a sharp pullback after sentiment-driven speculation. European satellite operators are unlikely to match Starlink in capital expenditure and economies of scale in the short term, so blindly chasing related stocks could expose investors to correction risks if fundamentals fail to support their valuations.